On its own, it is good news for IEO investors that ConocoPhillips is 14% of the ETF’s weight. The better news is that the aforementioned stocks combined for about 40% of IEO’s weight and that explains why IEO is up 18.1% this year.
Do not forget the Market Vectors Unconventional Oil & Gas ETF (NYSEArca: FRAK). FRAK is up 11% over the past 90 days, making it one of the top-performing industry ETFs over that period.
The $86 million FRAK allocates about a quarter of its weight to Anadarko, EOG, Devon Energy and Pioneer Natural Resources. Cimarex accounts for 2% of FRAK. [Old Energy M&A Rumor Boosts This ETF]
iShares U.S. Oil & Gas Exploration & Production ETF
Tom Lydon’s clients own shares of IEO.